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Taiwan's Connector, Optical Lens Suppliers to Benefit From Launch of New iPhone

Taipei, June 1, 2009 (CENS)--With Apple Inc. to launch the third version of iPhone, Taiwanese connector and optical lens makers are expected to benefit considerably from the new model, according to institutional investors.

Apple has reportedly placed contract orders for the production of the third version of iPhone, which is available in three different communication standards, including EDGE (enhanced data rates for GSM evolution), 3G and China's related standards, and is scheduled to be officially launched in China early July. The firm will contract local telecom companies to jointly promote the newest handset or netbook PCs, showing its determination to explore the market.

Among Taiwan's major optical lens makers, Genius Electronic Optical Co., Ltd. has had its production lines certificated and will join Apple's supply chain of the newest iPhone. Also, Largan Precision Co., a large-sized camera lens maker on the island, has already landed orders from Apple for optical lens for iPhone.

In the meantime, connector makers, including Cheng Uei Precision Industry Co. and Advanced Connectek Inc., will especially benefit from Apple's orders because iPhone and iPod can share the same dock connector. In other words, with the third version of iPhone to be on sale, Apple is expected to consume up to 40 million dock connectors for sale with iPhone and iPod in the second half of this year.

Cheng Uei confirmed that sales to Apple contributed nearly 30% to its sales revenue in April, implying that the firm has significantly benefited from launch of new iPhone. On the other hand, Advanced Connectek has also seen its production lines booked in the following months. Thanks to contract orders from its major clients, including Apple. Advanced Connectek is expected to score sales revenue of NT$2.3 billion for the second quarter, up around 30% from NT$1.76 billion posted a quarter earlier.

(by Steve Chuang)
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